For the quarter ended December 31, 2013, the company reported
consolidated quarterly revenues of $2.32 billion, an increase of 1.1%
when compared to the fourth quarter of 2012. For the fourth quarter of
2013, netincome increased 12% to $27.9 million, or $0.44 per
diluted share, when compared to the same period last year. For the
fourth quarter, adjusted net income (non-GAAP), which excludes after-tax
charges of $5.0 million for acquisition-related and exit and realignment
activities, was $33.0 million, or $0.52 per diluted share, an increase
of 26% when compared to the fourth quarter of 2012.

Consolidated operating earnings for the fourth quarter of 2013, were
$50.9 million, improved by $5.9 million, or 13.1%, when compared to
operating earnings for the same period last year. Adjusted consolidated
operating earnings (non-GAAP) for the fourth quarter of 2013 were $58.0
million, or 2.50% of revenues, increased $11.2 million, in comparison to
last year's fourth quarter results. Since the fourth quarter of 2012,
quarterly adjusted operating earnings (non-GAAP) have improved
sequentially in each of the four consecutive quarters.

"During 2013, our teams in the U.S., Europe and Asia collaborated to
achieve a successful outcome for the year," said Craig R. Smith,
chairman & chief executive officer of Owens & Minor. "Our teammates are
creating a faster, more flexible Owens & Minor that is well-equipped to
pursue emerging opportunities. Looking ahead, we intend to capitalize on
the investments we have made in the company to capture new market
opportunities, operate more efficiently and provide our healthcare
customers with the best logistics' solutions in healthcare."

In completing a year-end review of customer contracts in the
International segment, the company has revised the presentation of a
portion of its International segment revenues from a gross to a net
basis, after determining that this presentation is more representative
of the customer arrangement. This change resulted in reductions of gross
revenues of approximately $30 million to $35 million per quarter for the
fourth quarter of 2012 and each of the first three quarters of 2013. As
a result of this revised classification, International segment revenues
were $105 million for the fourth quarter of 2013 compared to $96.3
million for the same period last year, and were $384 million for 2013
compared to $137 million for 2012. This change did not affect gross
margin, operating earnings or net income, and had an immaterial impact
on consolidated revenues reported for 2012 and the first three quarters
of 2013. The International segment consists of Movianto, a leading
European healthcare logistics provider, which was acquired by Owens &
Minor on August 31, 2012.

2013 Annual Results

For the year ended December 31, 2013, consolidated revenues were $9.07
billion, an increase of $203 million, or 2.3%, when compared to 2012
revenues. The International segment contributed $384 million in revenues
for 2013 and $137 million for 2012, which represented four months of
revenue contributions. Net income for 2013 improved 1.7% to $111
million, or $1.76 per diluted share, in comparison to net income of $109
million, or $1.72 per diluted share, in the same period last year. For
the year, adjusted net income (non-GAAP), which excludes after-tax
charges of $8.9 million for acquisition-related and exit and realignment
activities, was $120 million, or $1.90 per diluted share, an increase of
2.2% in comparison to last year's results.

Consolidated operating earnings for 2013 improved slightly to $198
million, or 2.18% of revenues, compared to operating earnings of
$197 million, or 2.22% of revenues, for the same period of 2012.
Adjusted operating earnings (non-GAAP) for 2013 were $211 million, or
2.32 % of revenues, increased 1.7% when compared to adjusted operating
earnings of $207 million, or 2.33% of revenues, for the same period last
year.

Asset Management

The balance of cash and cash equivalents was $102 million at December
31, 2013. For the year, the company reported cash provided by operating
activities of $141 million compared to $219 million in the same period
last year. Asset management metrics for the quarter were positive with
consolidated days sales outstanding (DSO) of 22.1, as of December 31,
2013, compared to DSO of 20.8 days for the same period last year.
Consolidated inventory turns were 10.4 for 2013 versus inventory turns
of 10.1 for 2012.

Segment Results

Domestic segment revenues for the fourth quarter of 2013 were $2.21
billion, improved modestly from revenue of $2.20 billion. For 2013,
Domestic segment revenue experienced a slight decline to $8.69 billion,
when compared to the prior year. Domestic revenue growth was impeded by
ongoing market trends, including lower rates of healthcare utilization
and reduced government spending, as well as the company's continued
rationalization of smaller, less profitable healthcare provider
customers and suppliers. Despite these market challenges, the Domestic
segment achieved year-over-year and sequential revenue growth for both
the third and fourth quarters of 2013.

For the fourth quarter of 2013, Domestic segment operating earnings were
$56.6 million, an increase of $5.0 million when compared to same period
of 2012. Quarterly operating earnings, when compared to the prior year,
benefitted from certain strategic initiatives, including growth in
fee-for-service business. In addition, $2.0 million in legal expenses
and loss contingencies associated with California-specific litigation
and compensation and benefits requirements in 2012 did not recur in
2013. During the quarter, certain exit and realignment activities
designed to optimize the company's Domestic operations were accelerated;
these activities were associated with closing certain U.S.-based
distribution and logistics centers, and offsite warehouses. For the full
year, Domestic segment operating earnings were $212 million for 2013 and
2012, representing 2.44% and 2.43% of segment revenues respectively for
each year. In addition to factors affecting fourth quarter results,
annual operating earnings benefitted from certain California municipal
sales tax incentives and supplier price changes in the first half of the
year, offset by increases in healthcare costs, workers' compensation and
other administrative expenses.

For the International segment, quarterly revenues increased 8.6% to $105
million and were $384 million for the first full year as part of Owens &
Minor. For the fourth quarter of 2013, the International segment had
operating earnings of $1.4 million, representing a $6.2 million increase
over fourth quarter of 2012. For the full-year 2013, the International
segment narrowed its operating losses by $4.0 million to $1.4 million.
The comparative improvement for 2013 resulted from increased utilization
of network capacity, continued growth, and diminishing reliance on
transition services from the former parent company. During the second
half of 2013, the International segment also benefitted from seasonally
stronger customer activity.

2014 Outlook

The company reiterated the following financial guidance for 2014, which
was originally issued at its December 2013 Investor Day:

For 2014, the company is targeting revenue growth of up to 2% and
adjusted net income per diluted share of $1.95 to $2.05 for the year,
which excludes exit and realignment and transaction-related costs.

Upcoming Investor Relations Events

Owens & Minor will participate in the following investor conferences in
the first quarter of 2014; webcasts of executive presentations will be
available on www.owens-minor.com

Leerink Swann Global Healthcare Conference 2014; February 12; New York

Citi 2014 Global Healthcare Conference; February 26; New York

Barclays Capital 2014 Global Healthcare Conference; March 13; Miami

Investors Conference Call & Supplemental
Material

Conference Call: Owens & Minor's management team will conduct a
conference call for investors on Tuesday, February 11, 2014, at 8:30
a.m. Eastern. The access code for the conference call, international
dial-in and replay is #40287606. Participants may access the call at
866-393-1604.The international dial-in number is 224-357-2191.
Replay: A replay of the call will be available for one week by dialing
855-859-2056. Webcast: A listen-only webcast of the call, along with
supplemental information, will be available on www.owens-minor.com
under "Investor Relations."

Owens & Minor uses its Web site, www.owens-minor.com,
as a channel of distribution for material company information, including
news releases, investor presentations and financial information. This
information is routinely posted and accessible under the Investor
Relations section.

Included with the press release financial tables are reconciliations of
the differences between the non-GAAP financial measures presented in
this news release, which exclude acquisition-related and exit and
realignment charges, and their most directly comparable GAAP financial
measures.

Safe Harbor Statement

Except for historical information, the matters discussed in this press
release may constitute forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
those projected. These risk factors are discussed in reports filed by
the company with the Securities & Exchange Commission. All of this
information is available at www.owens-minor.com.
The company assumes no obligation, and expressly disclaims any such
obligation, to update or alter information, whether as a result of new
information, future events, or otherwise.

Owens & Minor, Inc., (NYSE: OMI)
a FORTUNE 500 company headquartered in Richmond, Virginia, is a
leading national provider of distribution and logistics services to the
healthcare industry and a leading European provider of logistics
services to pharmaceutical, life-science, and medical-device
manufacturers. With a diverse product and service offering and
facilities throughout the United States and Europe, the company serves
hospitals, integrated healthcare systems, alternate site locations,
group purchasing organizations, healthcare manufacturers, and the
federal government. Owens & Minor also provides technology and
consulting programs that improve inventory management and streamline
logistics across the entire medical supply chain. For news releases, or
for more information about Owens & Minor, visit the company website at www.owens-minor.com.

Owens & Minor, Inc.

Consolidated Statements of Income (unaudited)

(in thousands, except per share data)

Three Months Ended December 31,

2013

2012

Net revenue

$

2,318,524

$

2,294,208

Cost of goods sold

2,027,261

2,023,434

Gross margin

291,263

270,774

Selling, general and administrative expenses

222,043

211,415

Acquisition-related and exit and realignment charges

7,049

1,717

Depreciation and amortization

13,239

12,420

Other operating expense (income), net

(2,002

)

181

Operating earnings

50,934

45,041

Interest expense, net

3,263

3,422

Income before income taxes

47,671

41,619

Income tax provision

19,729

16,685

Net income

$

27,942

$

24,934

Net income per common share:

Basic

$

0.44

$

0.40

Diluted

$

0.44

$

0.39

Twelve Months Ended December 31,

2013

2012

Net revenue

$

9,071,532

$

8,868,324

Cost of goods sold

7,954,457

7,943,670

Gross margin

1,117,075

924,654

Selling, general and administrative expenses

863,656

682,595

Acquisition-related and exit and realignment charges

12,444

10,164

Depreciation and amortization

50,586

39,604

Other operating expense (income), net

(7,694

)

(4,462

)

Operating earnings

198,083

196,753

Interest expense, net

13,098

13,397

Income before income taxes

184,985

183,356

Income tax provision

74,103

74,353

Net income

$

110,882

$

109,003

Net income per common share:

Basic

$

1.76

$

1.72

Diluted

$

1.76

$

1.72

Owens & Minor, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)

December 31,

December 31,

2013

2012

Assets

Current assets

Cash and cash equivalents

$

101,905

$

97,888

Accounts and notes receivable, net

572,854

537,335

Merchandise inventories

771,663

763,756

Other current assets

279,510

231,264

Total current assets

1,725,932

1,630,243

Property and equipment, net

191,961

191,841

Goodwill, net

275,439

274,884

Intangible assets, net

40,406

42,313

Other assets, net

90,304

75,117

Total assets

$

2,324,042

$

2,214,398

Liabilities and equity

Current liabilities

Accounts payable

$

643,872

$

603,137

Accrued payroll and related liabilities

23,296

25,468

Deferred income taxes

41,613

42,107

Other current liabilities

280,398

254,924

Total current liabilities

989,179

925,636

Long-term debt, excluding current portion

213,815

215,383

Deferred income taxes

43,727

36,269

Other liabilities

52,278

63,454

Total liabilities

1,298,999

1,240,742

Total equity

1,025,043

973,656

Total liabilities and equity

$

2,324,042

$

2,214,398

Owens & Minor, Inc.

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

Twelve Months Ended

2013

2012

Operating activities:

Net income

$

110,882

$

109,003

Adjustments to reconcile net income to cash provided by operating
activities:

Depreciation and amortization

50,586

39,604

Share-based compensation expense

6,381

5,697

Deferred income tax expense

3,713

1,060

Provision for losses on accounts and notes receivable

787

1,004

Changes in operating assets and liabilities:

Accounts and notes receivable

(38,645

)

27,161

Merchandise inventories

(7,064

)

58,734

Accounts payable

47,374

(18,694

)

Net change in other assets and liabilities

(32,337

)

(4,490

)

Other, net

(1,123

)

(573

)

Cash provided by operating activities

140,554

218,506

Investing activities:

Acquisition, net of cash acquired

-

(155,210

)

Additions to computer software and intangible assets

(32,010

)

(29,131

)

Additions to property and equipment

(28,119

)

(9,832

)

Proceeds from the sale of property and equipment

3,051

3,298

Cash used for investing activities

(57,078

)

(190,875

)

Financing activities:

Cash dividends paid

(60,731

)

(55,681

)

Repurchases of common stock

(18,876

)

(15,000

)

Financing costs paid

-

(1,303

)

Proceeds from exercise of stock options

5,352

4,986

Excess tax benefits related to share-based compensation

898

1,293

Other, net

(8,623

)

(2,710

)

Cash used for financing activities

(81,980

)

(68,415

)

Effect of exchange rate changes on cash and cash equivalents

2,521

2,734

Net increase (decrease) in cash and cash equivalents

4,017

(38,050

)

Cash and cash equivalents at beginning of period

97,888

135,938

Cash and cash equivalents at end of period

$

101,905

$

97,888

Owens & Minor, Inc.

Financial Statistics and GAAP/Non-GAAP Reconciliations
(unaudited)

Quarter Ended

(in thousands, except ratios and per share data)

12/31/2013

9/30/2013

6/30/2013

3/31/2013

12/31/2012

Consolidated operating results:

Domestic

$

2,213,949

$

2,175,663

$

2,143,691

$

2,154,715

$

2,197,932

International (1)

104,575

94,884

92,386

91,669

96,276

Net revenue

$

2,318,524

$

2,270,547

$

2,236,077

$

2,246,384

$

2,294,208

Gross margin

$

291,263

$

273,329

$

273,431

$

279,052

$

270,774

Gross margin as a percent of revenue

12.56

%

12.04

%

12.23

%

12.42

%

11.80

%

SG&A expenses

$

222,043

$

211,344

$

212,548

$

217,721

$

211,415

SG&A expenses as a percent of revenue

9.58

%

9.31

%

9.51

%

9.69

%

9.22

%

Operating earnings, as reported (GAAP)

$

50,934

$

49,215

$

50,050

$

47,884

$

45,041

Acquisition-related and exit and realignment charges

7,049

2,747

638

2,010

1,717

Operating earnings, adjusted (Non-GAAP)

$

57,983

$

51,962

$

50,688

$

49,894

$

46,758

Operating earnings as a percent of revenue, adjusted (Non-GAAP)

2.50

%

2.29

%

2.27

%

2.22

%

2.04

%

Net income, as reported (GAAP)

$

27,942

$

27,970

$

28,872

$

26,098

$

24,934

Acquisition-related and exit and realignment charges, after-tax

5,024

1,899

412

1,521

1,237

Net income, adjusted (Non-GAAP)

$

32,966

$

29,869

$

29,284

$

27,619

$

26,171

Net income per diluted common share, as reported (GAAP)

$

0.44

$

0.44

$

0.46

$

0.41

$

0.39

Acquisition-related and exit and realignment charges

0.08

0.03

-

0.03

0.02

Net income per diluted common share, adjusted (Non-GAAP)

$

0.52

$

0.47

$

0.46

$

0.44

$

0.41

Financing:

Cash and cash equivalents

$

101,905

$

153,789

$

207,826

$

218,563

$

97,888

Total interest-bearing debt

$

216,243

$

216,850

$

216,994

$

216,414

$

217,591

Stock information:

Cash dividends per common share

$

0.24

$

0.24

$

0.24

$

0.24

$

0.22

Stock price at quarter-end

$

36.56

$

34.59

$

33.83

$

32.56

$

28.51

(1)Revised to reflect net presentation of revenues for
certain customer contracts. Previously reported revenues were
$128,937, $122,996, $120,994 and $126,992 for the prior four
quarters from 9/30/2013 to 12/31/2012, respectively.

Use of Non-GAAP Measures

This earnings release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). In general, the measures exclude items and charges
that (i) management does not believe reflect Owens & Minor, Inc.'s (the
"Company") core business and relate more to strategic, multi-year
corporate activities; or (ii) relate to activities or actions that may
have occurred over multiple or in prior periods without predictable
trends. Management uses these non-GAAP financial measures internally to
evaluate the Company's performance, evaluate the balance sheet, engage
in financial and operational planning and determine incentive
compensation.

Management provides these non-GAAP financial measures to investors as
supplemental metrics to assist readers in assessing the effects of items
and events on its financial and operating results and in comparing the
Company's performance to that of its competitors. However, the non-GAAP
financial measures used by the Company may be calculated differently
from, and therefore may not be comparable to, similarly titled measures
used by other companies.

The non-GAAP financial measures disclosed by the Company should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results calculated
in accordance with GAAP and reconciliations to those financial
statements set forth above should be carefully evaluated.